Enormous management or general partnership fees to insider controlled companies

Monthly operating reports show income is from individuals with little or no other outside income

Lulling letters to investors explaining that the delay in their interest/loan/deal payment is outside the control of the manager and, if they will be patient or continue to send money, the problems will be resolved

Health Care And Welfare Fraud

Numerous complaints of poor or non-existent services

Adverse publicity by media about operations

Investigations by regulators of operations

Lack of normal books and records

Unlicensed shelters, rehabilitation facilities, halfway houses, etc.

Deductions from employee paychecks for health care coverage, but funds not remitted to the insurance company

Rent/Equity Skimming

Failure to make mortgage payments

Transfer of entire or fractional interest to property shortly before foreclosure

Multiple fractional interests in real property listed on the schedules

Frequent quit claim deeds transferring interest in the property

Numerous "doing business as" designations and individuals in the chain of the title

Use of mail drop boxes as company business addresses

Post petition transfers into a bankruptcy estate

New corporation formed holding a single asset

Schedules amended to dramatically increase number of pieces of real property owned by the debtor

Same individual files claims in large number of unrelated cases. Proofs of claim do not have supporting documentation attached

Debtor complains about the unusual and menacing harassment by a creditor, and counsel takes no court action against the creditor

Unusual provisions in cash collateral orders

Agreements by the debtor to modify the automatic stay to permit foreclosure without any assertion that the lender is under secured

Concealment And False Statements

Claims of theft or large gambling losses just before bankruptcy

Inability to account for property listed on insurance policies or personal financial statements in existence before bankruptcy

Unsecured debt does not reconcile with assets listed, e.g., large number of medical bills, but no lawsuit listed· Failure to list prior bankruptcies· Significant amendments to list of creditors after Section 341 meeting

Complaints by ex-employees, ex-spouses, or ex-partners about hidden or omitted assets

Fifth Amendment claimed on any issue

Fire or other disaster occurs (of particular importance if arson is suspected)

Transfer of property to relatives or friends just before bankruptcy

Sudden appearance of loans or loan repayments to friends or relatives with little or no documentation

Sudden change of attorney for no apparent reason.· Debtor "confused" about his/her assets and financial affairs

Collusive Involuntary Bankruptcy

Debtor who is subject to a 180-day bar on refiling has an involuntary filed against him/her

Creditors have recently acquired the claim asserted in the involuntary